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13 Cards in this Set
- Front
- Back
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describe Relationship Marketing.
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- Focus on customer satisfaction and retention rather than just transactions.
- The price the customer is willing to pay reflects the perceived value. |
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Describe Total customer value.
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= the total of the entire product, services, personnel and image values that a buyer receives from a marketing offer.
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What are the 5 Relationship marketing includes:
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-Providing good service
-Handling complaints in a good manor -Treat customers well -Being present where customers are -Listening to customers |
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Segmentation & Positioning
STP Process = Segmentation, Targeting and Positioning Describe Segmentation. |
Segmentation – the division of a market into different groups of customers with distinctly similar
needs and product/service requirements. There are four basic criteria: - Substantiality – must be large enough - Identifiable and measurability – must be known - Accessibility – easy to attain - Responsiveness – needs to be different from other segments *Heterogeneity = Differences between segments *Homogeneity = Similarities between segments within each segment |
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What is Segmentation basis?
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*Profile criteria – who are the customers?
*Behavioral – where, when and how? *Psychological – why? |
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How do you Segmenting consumer markets?
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Demographic – Age, Gender, Income, Ethnicity, Family life-cycle
Socioeconomic – Income, education, status, living standards Geographic – rural, urban etc. (aim to identify segments with 40 to 80% of sales) |
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Describe targeting,
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Targeting - the process of evaluating each market segment’s attractiveness and selecting one or
more segments to enter |
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How do you Reaching the target market approaches 4 ways?
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- Customized marketing = marketing efforts customized to individuals or firms
- Undifferentiated marketing = mass marketing, one single marketing mix to all - Differentiated marketing = several segments, different marketing mixes - Focused/Concentrated marketing = firm select one segment only and customize marketing mix |
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How do one Choice of targeting approach influence marketing mix?
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Distribution outlets: All possible very few
Marketing communication: Mass specialized Price: Same price for all tailored |
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describe Positioning.
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– act of designing the company’s offering and image so that they occupy a meaningful and distinct competitive position in the target customer’s minds.
Two fundamental elements: -Physical attributes - the functionality and capability that a brand or product offers -Communication – how the brand is communicated and how consumers perceive the brand in relation to other brands |
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Describe the Causation and Effectuation model.
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STP Process is a clear causation model as it begins with the market. Effectuation begins with the
customer. *Market definition *Segmentation *Targeting *Positioning THE CUSTOMER -Customer identification -Customer definition -Adding segments/strategic partners -Market definition |
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Competitive strategies
Define the competitors: what are their strengths and weaknesses compared to ours? |
If you are the:
Market leader -Attack the market (ex. Coca Cola) -Defend position Market challenger -Attack market leader (ex. Pepsi) -Attack rivals Market follower -Maintain status quo (Small company) -Avoid hostile attacks, keep low profile Market nicher -High level of specialization (Small specialized) -Match resources with market needs |
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The marketing mix (4 P’s)?
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The marketing mix (4 P’s):
Set of controllable tactical marketing tools – blended together to produce the response wanted in the target market. *Product – anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need. *Price - the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service. *Promotion - Activities that communicate the product or service and its merits to target customers and persuade them to buy *Place - |
